The Economic Offences Wing (EOW) of the city police arrested the accused yesterday. The BMC had lodged a complaint of cheating, forgery and criminal conspiracy against 24 of its contractors, a police release said.
"The contractors are accused of producing bogus transportation documents without actually ferrying the silt and, thereby, causing a loss of Rs 36 crore to the civic body," it said.
Acting on the complaint, the EOW searched the offices and residences of seven contractors and arrested five of them yesterday. Besides, several files and other documents, the sleuths recovered Rs 32,00,000 cash during the searches.
The arrested accused were produced in a local court today and remanded in police custody till January 25.
"Role of other contractors was being probed and action will be taken as per available evidence," the police release added.